House of Fraser creditors have approved the CVA plan put forward by House of Fraser, which will see the closure of more than half of its stores and could potentially affect 6,000 jobs.
The CVA proposals, launched earlier this month, included plans to close 31 of the retailer’s 59 UK and Ireland stores and slash up to 2,000 directly-employed staff and a further 4,000 across brands and concessions.
House of Fraser says the approval will enable the firm to undertake the restructuring it needs to both secure its future and access new capital from C.banner which will acquire a 51 per cent stake in House of Fraser.
Chairman Frank Slevin says: “The approval of the CVAs is a seminal moment in House of Fraser’s history,”
“We must now continue with the implementation of our restructuring plan. This is also an important milestone in the transaction with C.banner and moves us toward the completion of the capital injection first announced in May.”
House of Fraser chief executive Alex Williamson adds: “The CVA proposals have been approved by our creditors and we are grateful for their ongoing support and belief in the future of House of Fraser.
“This was clearly a difficult decision to take but is, ultimately, the only one to secure our future.
“Our focus is on supporting all of our affected colleagues and we are exploring every opportunity available to them working alongside the Retail Trust and the wider retail community.”
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, concludes: “The approval of these CVAs provides House of Fraser with the breathing space it needs to proceed with its proposed operational restructuring plan across a smaller core portfolio of stores.”